In one of previous posts I talked about a possibility of using custom ringtones on iPhone. The loophole was found by a MacRumors forum user. By following the method described by the user, it was possible to sync custom ringtones to your iPhone for free.

Apple was very quick to fix this problem in the iTunes 7.4. Within 24 hours of releasing iTunes 7.4, users were alerted to the availability of iTunes 7.4.1, which of course does not allow using free ring tones. Thus, if you have iTunes 7.4 on your computer, you may refrain from updating to 7.4.1. Decide yourself what you need. The "latest" version of the software or ability to use free ring tones.

Original post from iPhone.Blogvasion.com